NCB predicts Ryanair fare hikes

RYANAIR is likely to increase fares by 9% this year, according to NCB stockbrokers.

NCB also said the re-opening of the airline’s Valencia base demonstrates its increased bargaining power with airports following the recession. NCB analyst George Humphreys said Ryanair’s route network has improved strongly over the last couple of years as it has allocated aircraft to operationally leveraged airports where other airlines have withdrawn capacity. “We expect fares at Ryanair to rise by 9% this year,” he said. According to the latest figures from the Central Statistics Office (CSO) airfares are up 20% in the year to May and jumped 14% from April to May this year.

Ryanair signalled earlier this year that it was planning on increasing fares this year for the first time in four years in order to sustain earnings growth.